Lake Zurich Village Board members recently approved a new budget for 2019. (Pioneer Press file)

A new $55 million budget in Lake Zurich is projected to reduce expenses by 2 percent from the 2018 plan and contain a small surplus of $10,000 in the general fund.

The surplus largely is the result of a growing economy, said Village President Tom Poynton. Village board members approved the proposed 2019 budget without making changes during a meeting Dec. 17.

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“Improvements within the economy have enabled local revenues from sales tax and income tax to both increase beyond expectations,” Poynton said.

Investment returns also rose considerably this year, creating additional revenue, said Village Manager Ray Keller, who called the new plan balanced.

“The village enjoys a stable financial position while providing excellent services to its residents and businesses, primarily due to the village’s organizational and financial restructuring efforts over the past few years,” Keller said.

The projected decrease in expenses is largely the result of officials completing a $3.5 million project to install new water meters during the past year, he said. Meanwhile, revenue is projected to increase 7 percent in the 2019 budget over the 2018 plan, despite no new revenue sources feeding the village’s coffers.

The 2019 general fund, which covers the day-to-day costs of Lake Zurich’s operations, totals $29 million — an increase of 3 percent above the 2018 budget, Keller said.

“General fund expenditures remain fairly stable,” he said. “Savings from staffing vacancies have provided some temporary relief for the current year, and opportunities for additional savings and reorganizations in the future.”

Board members also approved a 3.2 percent increase in the village’s property tax levy during the meeting. The increase is estimated to cost the owner of a home with a market value of $325,700 about $40 more in the coming year, said Finance Director Jodie Hartman.

During a public hearing before board members voted on the 2019 budget, trustees candidates from the two competing slates vying for village board seats in April also started debating line items in the proposed budget months before voters start heading to the polls.

Candidates from the Lake Zurich Values slate, which includes three challengers, questioned a number of expenses, including the decision to transfer $216,000 to cover the cost of special events hosted by the village.

“That’s great for Lake Zurich and brings in people from surrounding suburbs,” said candidate Jeff Halen, a former village trustee. “But should it come at the sacrifice of needed things? What about roads, tree replacement? And if you think they’re necessary, what about the improvements proposed at Paulus Park?”

Trustee Marc Spacone, who is running alongside two other incumbent trustees under the Lake Zurich Progress slate, said he sees no need to scale or roll back any of the popular special events the village offers each year.

“I hear a lot of positive comments from residents about our special events,” Spacone said. “They say it’s nice that we have a number of special events, not too many. It’s just enough to make sure people have enough to do. It’s at the heart of our community.”